| The terms of the lease called for JB to make annual payments of $9,850 at the beginning of each year, starting December 31, 2020. | The machine has an estimated useful life of 9 years and a $5,325 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. JB uses the straight-line method of depreciation for all of its plant assets. JB's incremental borrowing rate is 8%, and thelessor's implicit rate is unknown | The present value of the minimum lease payments is $49,178. This is a financing (capital) lease. Prepare an amortization table. Prepare the journal entries for 12/31/20 and 12/31/21. Place your answers in the space below: mortization Table: purnal entries: Debits Credits 12/31/20 12/31/20 12/31/21 12/31/21 12/31/21

| The terms of the lease called for JB to make annual payments of $9,850 at the beginning of each year, starting December 31, 2020. | The machine has an estimated useful life of 9 years and a $5,325 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. JB uses the straight-line method of depreciation for all of its plant assets. JB's incremental borrowing rate is 8%, and thelessor's implicit rate is unknown | The present value of the minimum lease payments is $49,178. This is a financing (capital) lease. Prepare an amortization table. Prepare the journal entries for 12/31/20 and 12/31/21. Place your answers in the space below: mortization Table: purnal entries: Debits Credits 12/31/20 12/31/20 12/31/21 12/31/21 12/31/21

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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